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HRI 2017 Annual Report 2017 ANNUAL REPORT Annual Report Cover artwork.indd 3 21/11/2018 13:01 Horse Racing Ireland Annual Report 2017 Contents Page Mission Statement ........................................................................................................................... 2 Board Members & Committees of Horse Racing Ireland ................................................................. 3 Chairman’s Report ........................................................................................................................... 6 Chief Executive’s Report .................................................................................................................. 7 Finance Review ................................................................................................................................ 9 Audited Group Financial Statements ............................................................................................. 11 Annual Report Page 1 Horse Racing Ireland Annual Report 2017 MISSION STATEMENT To develop and promote Ireland as a world centre of excellence for horse racing and breeding. In identifying its mission statement, Horse Racing Ireland (HRI) has placed emphasis on Ireland’s position in both the international horse racing and breeding industries and the quality of the product being offered to the racegoing public. The continuity of funding necessary to develop strategies to achieve the mission is the key element of the HRI Strategic Plan. The claim to be a world centre of excellence is a realistic one and the benefits of the strategies pursued to achieve the mission will be reflected in the economic, cultural and social environment of the country. This mission gives expression to the values and sense of purpose of the organisation. Annual Report Page 2 Horse Racing Ireland Annual Report 2017 BOARD MEMBERS & COMMITTEES OF HORSE RACING IRELAND HORSE RACING IRELAND BOARD Nicholas Hartery Chairperson Bernard Caldwell Stable staff nominee, HRI Industry Services Committee Daragh Fitzpatrick Chair, HRI Betting Committee James Gough Representative of racehorse owners Christy Grassick Representative of racehorse breeders Michael Halford Representative of racehorse trainers Elizabeth Headon Ministerial nominee Harry McCalmont Representative of the Racing Regulatory Body Conor O’Neill Representative of authorised racecourses Robert Nixon Representative of the horse racing industry in Northern Ireland Carol Nolan Chair, HRI Industry Services Committee Peter Nolan Ministerial nominee Meta Osborne Representative of the Racing Regulatory Body John Powell Representative of the Racing Regulatory Body Annual Report Page 3 Horse Racing Ireland Annual Report 2017 APPPOINTMENTS & FIXTURES COMMITTEE BOOKMAKERS COMMITTEE REMUNERATION COMMITTEE Nicholas Hartery Chairperson Harry McCalmont Chairperson Mary O’Connor Chairperson Con Haugh James Gough Bernard Caldwell Meta Osborne Michael Halford James Gough Conor O’Neill Raymond Horan Meta Osborne FAIRYHOUSE COMMITTEE FINANCE COMMITTEE FOAL LEVY COMMITTEE Pat Byrne Chairperson Nicholas Hartery Chairperson Jim Beecher Chairperson Billy Bourke Brian Kavanagh Bernard Caldwell Bernard Caldwell Harry McCalmont Suzanne Eade Gordon Elliott Meta Osborne Derek Iceton Paul Grimes Richard Kennedy Brian Kavanagh John McEnery Dara Mullen David O’Callaghan David Robinson Mary Wallace AUDIT & RISK COMMITTEE HRI RACECOURSES BOARD ITM COMMITTEE Con Haugh Chairperson Nicholas Hartery Chairperson Dermot Cantillon Chairperson Bernard Caldwell David Allman Victor Connolly James Gough Pat Byrne Caoimhe Doherty Sasha Kerins Tom Gaffney Cathy Grassick Peter Nolan Tim Hyde Michael Halford Nick Wachman Brian Kavanagh Brian Kavanagh Noel Meade Jim McCartan John Osborne Eimear Mulhern Richard Pugh David O’Loughlin John Osborne LEOPARDSTOWN COMMITTEE MEDIA RIGHTS COMMITTEE NAVAN COMMITTEE David Allman Chairperson John Moloney Chairperson Noel Meade Chairperson Henry De Bromhead James Gough Noel Cloake Chris Jones Nicholas Hartery Eimear Hannon Brian Kavanagh Derek McGrath Eddie O’Leary Una Manning Meta Osborne Jimmy Owens Dave McGrath Pat Shiels Eimear Mulhern Jim Mulqueen Dermot Weld PROGRAMMES COMMITTEE TIPPERARY COMMITTEE Harry McCalmont Chairperson Tim Hyde Chairperson James Gough Ciaran Conroy Michael Halford Matty Fogarty Conor O’Neill Maurice Moloney Meta Osborne Daniel O’Connell John Power Peter Roe Michael Ryan BETTING COMMITTEE INDUSTRY SERVICE COMMITTEE Daragh Fitzpatrick Chairperson Carol Nolan Chairperson Allan Byrne Bernard Caldwell Sharon Byrne Andrew Coonan Elizabeth Headon John Flannery Michael O’Donoghue Annual Report Page 4 Horse Racing Ireland Annual Report 2017 HRI NOMINATIONS / APPOINTMENTS Dundalk Cork Irish Equine Punchestown RACE Centre Joe Collins John Murphy Suzanne Eade Jason Morris Suzanne Eade Philip Furlong John Malone Dick O’Sullivan Michael Halford Ciaran Kennelly Meta Osborne Sandy Persse Carol Nolan Nyall Speirs Curragh Racecourse Limited Brian Kavanagh Harry McCalmont John Moloney Annual Report Page 5 Horse Racing Ireland Annual Report 2017 CHAIRMAN’S REPORT On behalf of Horse Racing Ireland, I am pleased to present our 2017 Annual Report. It was a strong year for the sector, with key figures showing an increase once again. It is testament to the work of my predecessor, Joe Keeling, and the leadership team in Horse Racing Ireland, that, as I start out on my term as Chairman, Irish racing’s reputation as a significant contributor to the Irish economy is growing. As has been acknowledged by the Minister for Agriculture, Food and the Marine, Michael Creed T.D., the committed approach shown by Joe in his role as chairman yielded a wonderful return for Irish racing. It is my role to build on what Joe and the HRI team have achieved. I was honoured to have been appointed as Chairman of Horse Racing Ireland in May 2018 by Minister Creed and hope that my business experience, and my experiences as a thoroughbred breeder and owner will be of assistance to the Board of HRI in the coming years. It is encouraging that the figures contained in this report point to an increase in the number of active owners in Ireland. We are confident that we can grow the numbers in all categories of ownership this year and beyond. Prizemoney rose significantly to €62.4m in 2017 with a further increase very much in evidence in 2018. With retaining and attracting owners in mind, it can only be a positive that HRI has undertaken to increase prizemoney year-on-year. We must ensure that we remain competitive with our European counterparts, particularly in a post Brexit environment. 2017 was a very memorable year for Irish-trained horses on the racecourses of the world. And likewise, our breeding industry, one of the strongest in the world, achieved so much with Irish bloodstock sales increasing for the eighth consecutive year and Irish-bred horses sold to 32 countries. In presenting these financial statements, I wish to thank the Board of Horse Racing Ireland for their work. I acknowledge all of those who make such a significant contribution to the Irish racing and breeding industry by serving on our many subsidiary boards and statutory and advisory committees. Finally, I want to acknowledge the work of the management team and staff of Horse Racing Ireland who carry out the day to day administration of Irish horse racing. As I have seen at first hand, their dedication is second to none. Nicky Hartery Chairman Annual Report Page 6 Horse Racing Ireland Annual Report 2017 CHIEF EXECUTIVE’S REPORT The remarkable success of Irish-trained horses on the world’s stage was very much in evidence once again in 2017. We celebrated a record-breaking 19 Irish-trained winners at the 2017 Cheltenham Festival. The success was to run through the year with a historic Melbourne Cup victory for 24-year- old Joseph O'Brien and a widely celebrated world record 28 Group and Grade 1 winners, spread over five different countries, for his father, Aidan. The Irish racing and breeding industries continued to perform strongly, with a continuing resurgence in several key figures including bloodstock sales, race sponsorship, Tote turnover and a welcome increase in the number of entries and runners under both codes. It is most encouraging that our breeding industry continues to perform strongly with Irish bloodstock sales increasing for the eighth consecutive year. The total value of bloodstock sold at public auction in Ireland was more than €175.6m while the figure for exported Irish- foaled horses sold at public auction globally was over €271.5m. We should be proud that Irish-bred horses were sold to 32 countries in 2017. While the number of horses in training was marginally down, the number of entries, runners and field sizes for both National Hunt and Flat racing showed an increase on 2016. The average field size increased from 11.2 to 11.5 runners overall. In 2017, Flat entries were up by 10.4% and runners by 5.7%, while National Hunt figures also rose, with more modest increases in entries (2%) and runners (1.7%) recorded. It remains a concern that on-course betting with both Tote and Bookmakers has declined once again, reflecting the continuing challenge being experienced by all on-course operators. Overall, in 2017 Tote Ireland saw a seventh successive year of turnover growth due to increases in off course and international sales. Revenue grew 6.7% from €92.9m to €99.1m in the year. There was growth in both Irish pools (up 6.7%) and international pools (up 17.4%). All profits from Tote Ireland’s operation go directly
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